[USC05] 10 USC 3501: Multiyear contracts for acquisition of property: authority; definitions
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TEXT OF PART V OF SUBTITLE A (3001 ET SEQ.), EFFECTIVE JANUARY 1, 2022, CURRENTLY SET OUT AS A PREVIEW

10 USC 3501: Multiyear contracts for acquisition of property: authority; definitions Text contains those laws in effect on December 31, 2020 Pending Updates: Pub L. 116-283 (1/01/2021), Pub L. 116-283 (1/01/2021), Pub L. 116-283 (1/01/2021), Pub L. 116-283 (1/01/2021), Pub L. 116-283 (1/01/2021), Pub L. 116-283 (1/01/2021), Pub L. 116-283 (1/01/2021), Pub L. 116-283 (1/01/2021) [View Details]
From Title 10-ARMED FORCESSubtitle A-General Military LawPART V-ACQUISITIONSubpart C-Contracting Methods and Contract TypesCHAPTER 249-MULTIYEAR CONTRACTSSUBCHAPTER I-MULTIYEAR CONTRACTS FOR ACQUISITION OF PROPERTY

§3501. Multiyear contracts for acquisition of property: authority; definitions

(a) In General.-To the extent that funds are otherwise available for obligation, the head of an agency may enter into multiyear contracts for the purchase of property whenever the head of that agency finds each of the following:

(1) That the use of such a contract will result in significant savings of the total anticipated costs of carrying out the program through annual contracts.

(2) That the minimum need for the property to be purchased is expected to remain substantially unchanged during the contemplated contract period in terms of production rate, procurement rate, and total quantities.

(3) That there is a reasonable expectation that throughout the contemplated contract period the head of the agency will request funding for the contract at the level required to avoid contract cancellation.

(4) That there is a stable design for the property to be acquired and that the technical risks associated with such property are not excessive.

(5) That the estimates of both the cost of the contract and the anticipated cost avoidance through the use of a multiyear contract are realistic.

(6) In the case of a purchase by the Department of Defense, that the use of such a contract will promote the national security of the United States.

(7) In the case of a contract in an amount equal to or greater than $500,000,000, that the conditions required by paragraphs (3) through (6) of section 3507(c) of this title will be met, in accordance with the Secretary's certification and determination under such subsection, by such contract.


(b) Multiyear Contract Defined.-For the purposes of this subchapter, a multiyear contract is a contract for the purchase of property for more than one, but not more than five, program years. Such a contract may provide that performance under the contract during the second and subsequent years of the contract is contingent upon the appropriation of funds and (if it does so provide) may provide for a cancellation payment to be made to the contractor if such appropriations are not made.

(Added and amended Pub. L. 116–283, div. A, title XVIII, §1822(a)–(c), Jan. 1, 2021, 134 Stat. 4197 .)

Effective Date

Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title.